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One of the most common traps people fall into is thinking the world shares the culture they are used to in their home country or region. When all of the business you do is in the United States of America, then you might end up believing that everyone does business the way Americans do business. However, different cultures out there operate according to a different set of values and it is important to understand those values if you’re going to be successful doing business with people from those cultures.

Chinese Business Etiquette

If you’re thinking of doing business in China, or with Chinese nationals, then it’s important that you know what Chinese business etiquette is like and how it differs from American business etiquette. By understanding how Chinese business culture differs from your own, you can gain the trust of the Chinese, avoid offending them and grow your business to new heights. There are quite a few differences between American and Chinese business culture that should be touched on in detail.

The Meaning of Pride

The greatest difference between the Americans and the Chinese is in their mentalities. Americans are highly individualistic and so they value personal achievement above collective achievement. They value personal identity far more than they value collective identity.

This is not the case for the Chinese, who value their national and societal identity more than anything else. Americans do not have a problem bragging about their successes and personal achievements. They see it as an okay thing to do. The Chinese, however, see this as highly selfish because one should always consider themselves part of a whole and successes are associated with the nation or the company, rather than the individual who orchestrated the success. If you focus too much on your individual achievements in front of Chinese businessmen in a bid to impress them, you might end having the exact opposite effect.

Communication Styles

Americans are very direct in their communication styles. They tend to be blunt, persuasive, and highly aggressive when they are pursuing a business deal. They want to have the upper hand in every negotiation. This is a part of American work culture and it works well here. It doesn’t work as well in Chinese work culture. In fact, if you’re too direct with Chinese businessmen, you will likely cause them to shut down and withdraw from negotiations altogether.

The Chinese prefer to be polite and courteous, showing deference to their business contacts and respecting them. They choose the indirect path to negotiations. If you show them this respect and politeness, they will match it and you will find it easier to negotiate your way to a middle ground where everyone is satisfied.

Mixing Business With the Personal Life

Despite the fact that the Chinese choose the indirect path to their negotiations, they also tend to ask highly personal questions of their business contacts, which might seem in contradiction to their polite nature at first. However, it isn’t. It’s just another illustration of how the Chinese value personal relationships far more than impersonal business relationships. In America, you can do business with someone, even if you would never consider being friends with them outside of the business setting. In China, it is inconceivable to do business with someone you don’t like in the first place.

The Chinese will ask you highly personal questions; questions that would be frowned upon in the American business setting and considered irrelevant to the deal. They will ask you about your family, your personal life, and so on. This is because the Chinese let their professional and personal lives overlap. This is a central aspect of Chinese business customs. They want to consider you a friend and not just a business associate. They, therefore, need to build their trust in you or they won’t be able to do business with you. Do not be mistaken, however; you should still maintain your formality, even in such situations, and be respectful and polite. You should not take this as an invitation to be informal and excessively familiar.

Chinese Entertainment

In the spirit of the Chinese’s emphasis on letting professional and personal lives overlap, the way they entertain their business associates is also different from the way the Americans do it. In America, you might find it rather unethical to wine and dine your clients outside of the business setting. You should keep everything strictly professional and never meddle in their personal lives. That is the essence of the maxim that you should never mix business with pleasure, after all.

In China, the situation is very different. Chinese business people expect to wine and dine their business associates. In fact, in China, such entertainment is a goal unto itself. While in America businessmen may take their clients out to discuss business, in China this is frowned upon. The Chinese rarely discuss business when they take their business associates and clients out. Instead, the goal is to make the business associate feel respected and welcomed. They can even crown the occasion with gifts and tokens of generosity from the host.

Deference to Leaders

The Americans will not hesitate to challenge those in authority. In fact, in the modern American workplace, the atmosphere is collegiate and collaborative and the camaraderie is that of equals. However, in China, leaders are deeply respected and never challenged. The Chinese respect the decisions made by those above them and consider them final. There are also unspoken rules of deference to seniors and open respect.

Decision Making

Americans value expediency when making business decisions. Time is money in America, and so the faster you can close the deal, the better. In China, business decisions aren’t made that quickly. The Chinese tend to take their time discussing a business and deliberating on its pros and cons. They will also consult with many others that are higher than them on the hierarchy before they arrive at a decision. Putting them under pressure to make their decisions quicker will only lead to them shutting down and politely resisting you.

The Importance of the Personal Guarantee

Americans value the contract and the finality of the written word. They see all their business deals as legally binding contracts that will hold up in a court of law. The terms are clear and the penalties for breaching the contract are well defined.

The Chinese have a far more lax attitude on this matter. They mostly seal their deals with handshakes, rather than signatures, and put more value on trust and personal guarantees than anything else. While it might seem confusing at first, it makes sense if you remember that the Chinese value personal relationships more than anything else. In Chinese business settings, every party is bound by honor to do the right thing in the agreement. They also expect the other party to do the same and, because they already have a strong personal relationship, trust them to do so.

The Focus on Politeness

The Americans hardly ever back down from an argument. They aren’t afraid of disagreeing and will readily point out things they don’t like about the other person. A Chinese professional will rarely do this. They will do anything to maintain courtesy and politeness in their dealings, even if it means lying to your face just to avoid disagreeing with you. Sometimes their ‘yes’ might actually mean ‘no’ because they prefer to offer white lies to save face and prevent conflict.

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About the Author

Nicole is a business writer with nearly two decades of hands-on and publishing experience. She's been published in several business publications, including The Employment Times, Web Hosting Sun and WOW! Women on Writing. She also studied business in college.